By- James Gatheru
Use this cold calling calculator to measure the return on investment (ROI) of your sales team's cold phone calls.
In sales, any strategy that your company adopts must be measured to guarantee your team is on the right track.
And when it comes to SDR, there are plenty of metrics you should keep an eye on to detect what’s wrong and how to improve it.
Read on to learn 6 metrics (including ROI) that you should measure for your cold calls, as well as more information on how this strategy works better than even email when prospecting potential clients!
Cold Calling Metrics
There are many metrics that you should consider when evaluating the efficiency of your cold calling strategy.
Presumably, the most important of all (the bottom line, even) is the return on investment (ROI) of your cold calling efforts.
This measures if your investment in cold calling is turning into a profit for your business by gauging the value earned by contracts with the costs of cold calling.
The formula for cold calling ROI is:
(Won contract value per month - Cold Calling cost per month) ÷ Cold Calling Cost per month
Let’s say for example you spend $10,000 monthly on cold calling and you gain 3 contracts of $15,000 with clients.
The calculation would be: (45,000 - 10.000) ÷ 10,000 -> 35,000 ÷ 10,000 -> 3.5%
In this example, your cold calling ROI would be 3,5%.
If you think calculating this manually is complicated, check out our cold calling calculator!
5 Cold Calling Metrics You Should Measure
Conversions, averages, meetings per month…
There are many metrics you should track monthly to see if your cold calling efforts are working.
Metrics help you know where there are issues and how to solve them. Instead of using them to “bully” SDRs into performing better, use these metrics as a tool to guide them towards success.
Check out 5 formulas below:
#1 Monthly cold calling conversion rate
Contracts sold ÷ cold calls per month
Example: Your cold caller made 8000 calls and sold 200 contracts. The conversation rate would be 2.5%.
#2 Average call-to-conversation rate
Conversations per month ÷ calls per month
Example: Your SDR made 8000 calls, 500 of which turned into conversations. The average call-to-conversation rate would be 6.25%.
#3 Average conversation-to-meeting rate
Meetings per month ÷ conversations per month
Example: Your cold caller arranges 20 meetings from 500 conversations. The average conversation-to-meeting rate would be 4%.
#4 Closed Won rate
Closed deals from cold calling ÷ number of meetings
Example: Your SDR closed 2 deals from 20 meetings. The closed-won rate would be 20%.
#5 Won contract value per month
Closed won deals per month x average contract value
Example: Your cold caller closed 2 deals and the average contract value is $15,000. The won contract value per month would be $30,000.
More Cold Calling metrics
Want to find out more ways to measure the success of your cold calling specialists? Check out more metrics here.
Is Cold Calling Effective?
Cold calling is an overlooked prospecting strategy for gaining clients.
And why is it overlooked? Well, that’s because of the bad reputation cold calling has from ill-intended telemarketing firms that call people without discretion and pester them into buying goods or services.
But cold calling doesn’t have to be like that. That’s the incorrect way to execute it and won’t boost your sales.
Effective cold calling is targeted and backed up by research. It’s when you call somebody qualified for the purchase and a fit for your services.
In other words, instead of cold calling your average joe, you’ll be calling the higher-ups of firms like Ford, Sephora, and Freddie Mac.
Also, cold calling needs data to work. Along with the metrics above, you need to perform tests and survey your customer base.
Effective scripts
Unstrategic cold calling is usually done without a script — or worse — it’s always the same outdated script. Ever received 2 precisely exact calls from the same company?
Meanwhile, effective cold calling uses A/B testing on scripts to see which one provides the best conversion rate. And it isn’t subjective: it’s cold data on what words are making your potential clients stay on the phone.
Qualification of inbound website leads
It’s the norm at many companies to send an email to a lead as soon as they sign up for a newsletter or ask for a quote.
A quick cold call is effective to determine which leads are qualified for your service. And those who aren’t, you can forget about them — focus your calls on those who are.
Customer surveys
To improve your cold calling strategy, you need data on your potential clients. And one of the best ways of doing that is surveying your current clients.
Ask them about the problems they face and how your service can solve these issues. A solution-based approach is usually effective in cold calling.
Is Cold Calling Dead?
Although many marketers will make you believe phone calls in the digital age are a thing of the past, it still is one of the most effective outbound channels for sales.
32% of SDR teams consider cold calling to be their most effective channel. More than email, social media, or direct mail.
So why do people believe it’s dead? That’s because they associate cold calling with telemarketing and the disgust most people (especially gen z and millennials) have of this approach.
But as we mentioned earlier, cold calling is an effective way to reach out to qualified clients without annoying them. But it takes to research and training to do so.
Instead of spending time and money training your own sales team in cold calling, hire our experienced specialists. When you sign up for our service, we select an exclusive SDR just for you.
That means a qualified professional that can make up to 400 calls daily for your business.
Contact us to learn more
Disclaimer: (This article is sponsored and includes some commercial links)
